January 5, 2012
When selling a home, few things are better for the price than competition. If one buyer wants the property, then the merits can be debated. If two or more wish to live there, then the question ceases to be how nice a home is as people focus on what the different contenders are willing to pay for it.
For home sellers
Drawing more than one interested buyer at the same time may be difficult,
depending on local conditions and the current circumstances. Prospective buyers are not all looking for the same thing. They have different preferences, budgets and personal circumstances.
One real estate expert noted having multiple home buyers has several benefits.
Aside from driving the price up, it can also encourage potential home buyers to commit to the purchase and make an offer rather than waiting.
MSN Real Estate notes market conditions are the main factor determining whether it is possible to have buyers competing. Areas with strong job markets and other attractive features could bring in several would-be residents.
For home buyers
Just as having competition benefits home sellers, buyers may wish to avoid it when possible.
One tactic, a real estate agent suggests, is to ask for a counter-offer from the seller rather than trying to bid against an unknown third party. He also suggests walking away from a deal to see what happens as an alternative. This risks that another prospective buyer will purchase the home, but may also make it obvious if there is no serious competition.
If that turns out to be the case, then prospective buyers can return to the
negotiating table from a stronger position. If there is another potential home buyer with a serious interest, however, then it may be necessary to determine exactly how attractive a specific property is and how much it is worth to avoid overpaying.